Stone Point Capital buys AXA RE

Paris Re Holdings, a bid-vehicle sponsored by a consortium of international investors led by US-fund manager Stone Point Capital, has signed a definitive agreement to acquire AXA RE, the reinsurance subsidiary of France’s AXA group.

The transaction will generate a capital gain of about €120m (US$155m) on the business ceded, and AXA will begin benefiting from the capital release in 2007.

In addition to Trident III LP, a fund managed by Stone Point Capital, other lead investors include affiliates of Hellman & Friedman LLC, Vestar Capital Partners, Crestview Capital Partners, Och-Ziff Capital Management, ABN AMRO and New Mountain Capital.

Following the receipt of a binding offer on April 6 2006 and consultation with the relevant workers’ councils, AXA announced the signing of a definitive agreement to cede the business of AXA RE to Paris Re Holdings.

AXA will take a stake of about 4% in Paris Re Holdings, which has a market capitalisation of around US$1.5bn.